Singapore shares were slightly lower, but Sembcorp Industries outperformed the market after several brokers highlighted the strong growth momentum and attractive
valuation of the conglomerate’s utilities business.
The Straits Times Index was down 0.1% at 3,006.22 points, while MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.2% higher.
Shares of Sembcorp Industries rose as much as 2.4% on a volume of 3.3 million shares, 1.2 times the average full-day volume over the past 30 days.
Sembcorp reported a 18.5% fall in third-quarter net profit to $181.2 million from a year earlier, dragged by lower revenue recognition for its rig building
projects.
However, net profit for its utilities unit jumped 27% to $99.8 million. Utilities contribute about 55% of the group’s net profit, while marine constitutes nearly 39%. The rest came from urban development and other businesses.
UOB Kay Hian said Sembcorp’s utilities earnings growth in 2012-2015 fiscal years will be driven by three additional power plant capacities in Oman, Singapore and India.
Maybank Kim Eng said after stripping out Sembcorp’s other business segments, utilities valuations still look "extremely attractive", trading at an implied price-earnings ratio of about 6.3 times for fiscal year 2013.
Shares of Harry’s Holdings jumped as much as 53% to S$0.23, matching the price offered by F&B Asia Ventures, a unit of Everstone Capital Partners II LLC, to
privatise the Singapore bar chain operator.
More than 1.5 million shares changed hands, 10 times the average full-day volume over the past 30 days.
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